NACL Industries, a small-cap player in the pesticides and agrochemicals sector, has recently received a stock call upgrade to ‘Hold’ by MarketsMOJO as of January 3, 2025. This decision comes after the company reported positive results for September 2024, breaking a streak of five consecutive negative quarters. Notably, the operating profit has shown a robust annual growth rate of 31.12%.
The company achieved its highest operating cash flow of Rs 50.40 crore and an operating profit to interest ratio of 2.37 times. Additionally, the PBDIT for the quarter reached Rs 40.78 crore. Despite these positive indicators, the technical trend remains sideways, indicating a lack of clear price momentum.
NACL Industries has a return on capital employed (ROCE) of 2.5 and a fair valuation with an enterprise value to capital employed ratio of 1.9. However, the company faces challenges with a high debt to EBITDA ratio of 10.46 times, indicating low ability to service debt. Over the past year, the stock has underperformed the market, generating a return of -11.01% compared to the BSE 500’s 16.59%.
